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A monopoly leads to allocative inefficiency.

the verdict
SUPPORTED
the evidence backs this
Recorded sources
10 sources for · 0 against

Counts group repeated records of the same source within each side. They do not measure evidence strength or source independence.

Is it true that a monopoly leads to allocative inefficiency?

Yes. An OpenStax economics textbook states directly that monopolies do not supply enough output to be allocatively efficient. Other sources describe monopoly-induced deadweight loss and welfare losses, though several are fragmentary or address narrower contexts.

Verdict: SUPPORTED · 10 sources for, 0 against · Last checked

Evidence for · 10
Bilateral monopoly
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Bilateral monopoly. (n.d.). en.wikipedia.org. https://en.wikipedia.org/wiki/Bilateral_monopoly

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More for · 9
Natural monopoly
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Natural monopoly. (n.d.). en.wikipedia.org. https://en.wikipedia.org/wiki/Natural_monopoly

Canadian Industrial Organization and Policy
1985
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Green, C. (1985). Canadian Industrial Organization and Policy. books.google.com. http://books.google.com/books?id=-qNHAAAAYAAJ&dq=A+monopoly+leads+to+allocative+inefficiency.&hl=&as_pt=BOOKS&source=gbs_api

Private participation in infrastructure : a review of the evidence
2001
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Private participation in infrastructure : a review of the evidence. (2001). documents.worldbank.org. http://documents.worldbank.org/curated/en/487901468739343164

PubMed: Toward allocative efficiency in the prescription drug industry.
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PubMed: Toward allocative efficiency in the prescription drug industry.. (n.d.). pubmed.ncbi.nlm.nih.gov. https://pubmed.ncbi.nlm.nih.gov/7776946/

OpenStax Principles of Economics 2e: 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price
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OpenStax Principles of Economics 2e: 9.2 How a Profit-Maximizing Monopoly Chooses Output and Price. (n.d.). openstax.org. https://openstax.org/books/principles-economics-2e/pages/9d9c8e74-4b7b-4fd3-983f-9a33c9131e13@

Under what conditions does market failure occur?
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Under what conditions does market failure occur?. (n.d.). economics.stackexchange.com. https://economics.stackexchange.com/questions/10866

Essentials of Economics
2012
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Hubbard, G., Garnett, A., & Lewis, P. (2012). Essentials of Economics. play.google.com. https://play.google.com/store/books/details?id=7CriBAAAQBAJ&source=gbs_api

Microeconomics
2014
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Hubbard, R. G., Garnett, A. M., Lewis, P., & O'Brien, A. P. (2014). Microeconomics. play.google.com. https://play.google.com/store/books/details?id=L8aaBQAAQBAJ&source=gbs_api

Regulation by Demand: A New Institutional Approach to the Natural Monopoly Problem
1980
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Jörn, K. (1980). Regulation by Demand: A New Institutional Approach to the Natural Monopoly Problem. authors.library.caltech.edu. https://doi.org/10.7907/2wb6k-q9j37

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